Central Banks Commonly Aim to Keep the Price Level

question 6

Multiple Choice

Central banks commonly aim to keep the price level

• A) declining slightly
• B) perfectly constant
• C) growing by about 1% per year
• D) rising by about 2% per year
• E) increasing by about 5% per year

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of data values, indicating how spread out the data points are from the mean.

Free Throw

An unopposed attempt to score in basketball, granted after a foul, from a designated line approximately 15 feet from the basket.

Mean

The average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Standard Deviation

A technique for measuring the degree to which data points are spread out or varied.